WisdomTree reacts to US job data

Following news non-farm payrolls in the US grew by 156,000 jobs in December, a number that missed expectations but was overshadowed by a sharp gain in wages, Kevin Flanagan, Senior Fixed Income Strategist at WisdomTree reacted by saying:
“Today’s US job’s report showed a slight uptick in unemployment – only 63,000 jobs created versus a labour force that grew by 184,000 but the upside was that the year on year average hourly earnings increases of 0.4pp to 2.9% were the highest since mid-2009. We think this keeps the bullish sentiment on the US economy alive and well.
“It would also appear that both the US Treasury and the Fed focus is trained to be more on wages and less on job creation – something to look out for as President-Elect Trump takes office this month with the Fed meeting shortly thereafter. For now, we think fiscal policy is going to trump wages and the Fed will likely play a wait and see game before making any further moves in February.